I’m not only hooked on traveling, I’m hooked on watching travel programs on television.
I’m not talking about the shows that are trying to get you to book a vacation with the sponsor, but the real behind the scenes, genuine and authentic versions.
There’s been a great series over the past couple of years called ‘Amazing Hotels – behind the front desk’. The concept behind the series is that a chef and a restaurant and hotel critic travel to various hotels around the world and actually work in them. Well, I say work in then but really, it’s a case of shadowing various members of staff in their day-to-day tasks. While this is happening, they gain insights into not only how those hotels work, but what the front-line workers think about the industry and the effect that tourism has on their lives.
They’ve featured huge spectacular hotels in Singapore and Dubai, safari lodges in Africa, small and very expensive hotels in remote parts of South America and very remote lodges in Iceland. Over the past two years they’ve visited a wide variety of extremely different locations. Without exception they’ve found that working in the hospitality and tourist industry has had a profound effect on the local workers and……….
A recent article in a newspaper, The Economist, highlighted the changes that are happening in New Orleans. The Crescent City is local to Northwest Florida in that its only a four hour drive away and the culture (Mardi Gras for example) and cuisine of the City, and Louisiana in general heavily influence the Northern Gulf Coast. It can be said that Northwest Florida is closer in temperament an culture to NOLA, than it is to the rest of Florida. Orlando, which many international travelers see as ‘Florida’ is after all a six hour drive away and shares little in culture with the Panhandle.
The gist of The Economist article, which you can read HERE, is that the Mayor
and administration is attempting clean up the city’s act. New Orleans is famous for (admittedly among many other things) the free wheeling nature of the French Quarter in general and Bourbon Street in particular. Over recent years the French quarter has become a center for Bachelor and Bachelorette parties. Most of these at some stage gravitate towards the bars and music joints along Bourbon Street where they seek out the ‘genuine’ flavor of the old city.
Now the Mayor, understandably, wants to make sure that visitors are both safe and legal. There is a backlash against the cleanup with the slogan ‘Bourbon Street not Sesame Street’. As the article points out, some of the workers in the area question just how illegal the activities actually are and offer the suggestion that by changing the place, people may be put out of work or worse, moved into activities that really are beyond the pale.
Many years ago Bugis Street in Singapore had an equally salacious reputation. During the ‘50s and through to the ‘80s the street was famous for its nightly gatherings of the local transvestite population. It became one of Singapore’s main tourist attractions. Not somewhere one would recommend to your maiden aunt for a visit certainly, but it did contribute much to Singapore’s tourist attraction. Bugis Street is still there but was cleaned up during the ‘80s and ‘90s and is now one of the places famous for low cost clothes and a tourist attraction in in its own, new right.
From a tourism and moral point of view there can be no justification for illegal activities. However is there perhaps a very fine line to be trod between sanitizing and destroying? What would Las Vegas be without gambling for example.
A few years ago New York City decided to make Times Square more family friendly and threw out the dubious bars and entertainments. It doesn’t seem to have affected it’s ability to draw tourists although I would question if the area, particularly in the late evening is a place for visitors of a shall we say, a nervous disposition.
We visit New Orleans frequently and stay in the French Quarter. We walk around the area at night and although we cross Bourbon Street we tend not linger and never visit the bars and music joints. We know they’re there of course and don’t begrudge their patron the thrill of an authentic experience, providing they know what they’re doing and keep their wits about them.
Would a Disneyfied version of the Vieux Carré still be attractive to its patrons? Would a fake Eiffel Tower still draw visitors? I suppose the fake tower in Las Vegas does, but then Vegas has the gambling too……
Here on the northern coast of the Gulf of Mexico, the peak of the summer tourist season is drawing to a close as the schools begin to return for the new academic year. The majority of the summer tourists to the area that stretches from Apalachicola on the Forgotten Coast through to Orange Beach and Gulf Shores in Alabama (actually also further through Mississippi to Louisiana) relies heavily on the family market and draws from the whole of the South East and now up into the mid west. So, now comes the time to reflect on what we did well and what we can improve for 2018.
Of course, the best part of the year is yet to come, as the weather cools slightly and humidity drops, we start to attract both local tourists and the visitors who are not tied to school vacations. A time for festivals and events that draw in an audience that tend to spend more and have an emotional attachment to the Gulf Coast.
How do you reach out to these guests to your business? What’s the secret to getting under their skin? I recently wrote a blog post about the impact that the iPhone and other smart devices have had on the travel, tourism and hospitality industries. In many cases we don’t recognize how things have developed over the past ten years or the major impact changes have had. We’ve seen how the music industry moved through cassettes, CDs and into downloads (possibly back to vinyl too!) over a relatively short period of time but the changes brought about by smart devices have been more rapid and continue to evolve. Fingerprint recognition on phones is now commonplace for unlocking and payment systems but now it’s rumored that Apple will introduce facial recognition on their next iPhone. At the same time Delta Air Lines who have been using electronic boarding passes on flyers phones are now experimenting with identifying passengers with fingerprints and iris scanners.
Does this have an impact on you? If you’re involved in the accommodation industry, how long before the move to door locks that react to smartphones is common place. Major hotel groups are rolling those out and even cruise companies are fitting out their ships with them. This is at a time when many condo owners resist even installing free wi-if for their guests.
How about payment systems take Apple Pay and the Android equivalent? Is that becoming pervasive and does your restaurant/attraction/hotel (insert the appropriate business!) accept it? I was surprised at a fairly high end restaurant recently to be told they didn’t accept American Express cards for payment, let alone any phone based payment systems. That seems to me to be alienating a whole sector of high spending guests.
We are seeing grocery delivery to condos an beach homes taking off with companies like Destin Grocery Girls and now Whole Foods, Fresh Market and Publix offering similar services. This could well have an effect on how many times tourists visit restaurants during their stay. The delivery of very high quality food to your own vacation kitchen, means you don’t have to go out to fight traffic, find parking or restrict alcohol consumption. The tourist may then just go to restaurants for their ‘amazing’ experience.
These are all changes that are happening faster than we care to admit, and need fast reactions from those of us in the industry.
Traffic, tourists and tourism employees.
One of the things that agitates us locals about the summer season is traffic. Believe me it affects the tourists too. The great danger is that the visitors, particularly those coming for the first time may be put off returning if they spend a lot of time stuck in traffic jams. It’s a phenomenon that affects the whole of the Gulf Coast to a lesser or greater extent, although the actual manifestations vary from area to area.
For some destinations traffic issues are pure access. The Saturday snarl-ups at the mid-bay bridge for example, or the lines along 98 around the Navarre bridge. On 30A there are certainly some bottle-necks but the issue there appears to be where to find a parking space. Okaloosa Island and Fort Walton Beach suffer from the bridge with junctions at both ends, while Destin is in grid lock for various reasons from Destin Bridge all through to the county line in the east. The ‘season’ for this is of course from Memorial Day to Labor Day. The rest of the year there is not such an issue. This all stems from our infrastructure which was not planned to cope with the volume of traffic during the peak season. No person or entity could have foreseen such growth when the road system was planned (or happened!) years ago.
The apparently obvious solution is to build more roads, elevated highways or even ban traffic, but none of this makes sense in the short term. Roads take years to plan and authorize, and highways cost upwards of $1 million a mile to build. I’ve been looking at what tourists destinations worldwide are doing to solve such issues in the short term, making best use of the resources they have available, plus how they are planning for 5, 10 and 20 years ahead – giving the time it takes to plan and build infrastructure changes. It’s vital to factor the demographic and attitude changes we can foresee or guess. For example, fewer people are learning to drive and many are not considering car ownership. Ride sharing and acceptance of efficient and pleasant public transport is growing. Autonomous vehicles are coming faster than many are recognizing. Building infrastructure based on current attitudes and technology may be inefficient and frankly redundant. Added to that we need answers now, not in five or ten years time.
Walton County have a parking issue. Those visitors who visit 30A need somewhere to park, so the county has used bed tax to purchase a total of 12.66 acres of land to provide for beach access, parking and a future trolley hub. This seems, to this tourism guy, an eminently sensible move.
I mentioned that Walton County have recognized that parking is their major problem and they have taken steps to address this immediately. The County has spent $24.1 million of bed tax on 12.66 acres of land including 697-feet of beachfront. This will primarily be used for parking but critically also for a future trolley hub.
Visitors, who we should recognize are increasingly familiar with ride sharing (Uber and Lyft), and public transport in their urban home environments, are happy to use trolleys on vacation if those are comfortable, efficient an either free or cheap. They will give up their cars for a more stress free experience. Indeed with the drop in people learning to drive, and in car ownership particularly in urban environments (where most of our visitors originate) they may be attracted by the availability of trolleys. Subsidizing these services may prove cheaper than building roads (at a cost of upwards $1 million per mile) or maintaining them. It’s also something that can be done now, for next season, rather than in 5 or 10 years.
How about 98 through Destin? Well, much of this traffic is visitors driving through the area, and we need to encourage a lot of this to transit through and around the area on I-10. However, a great deal of the volume is getting from accommodations to the beach, the stores, events and restaurants. Not only does this traffic clog the roads but needs parking at either end. Many destinations are solving this issue by providing park-and-ride services. Acquiring parking areas is invariably cheaper than building roads and certainly more immediate. Subsidizing trolley services is again cheaper than building and maintaining roads. Importantly, the trolley service must be attractive, so it must be efficient, pleasant and crucially be a better experience than using your own vehicle.
This means the trolley must have priority over other road users, either by creating bus lanes (possibly only during peak traffic periods) and by making the ride cheaper. Free trolley travel, and charging for parking, except at the park-and-ride stop is a good start and is being used in many destinations across the country and around the world. Providing trolley transport and park-and-ride would also help workers in the tourism and hospitality industries get to their jobs too. They need all the help they can get!
Remember that these concepts can be implemented quickly not over many years. They’re also in use in many other places. They are measures that can be switched on only at peak times, either during particularly heavy traffic hours, days or certain months. They can be flexible in that we can adapt to changing demographics and fashions and we won’t end up covering the whole coast in tarmac!
Our solutions to these challenges need to be radical and inventive. We don’t need to reinvent solutions. Many others have already proved they work.
A further traffic issue we have in the area from Fort Walton Beach through to 30A is how the people who work in the tourism and hospitality industry get to and from work. Comparatively few industry folk actually live in Destin or on 30A. They travel in from Fort Walton Beach, Crestview, Niceville and further out. The cost of gas alone makes a dent in their income and their presence on the road increases congestion. Many travel across the Mid Bay Bridge and get no break in the tolls. It makes no sense if these workers have to work for an hour just to pay their Bridge tolls. Surely the Bridge Authority could engineer a 5 day pass for these vital workers as a starting point. Again, cheap or free park and ride using public transport to could not only make our strategic tourism worker’s lives better and more cost effective, but could reduce traffic congestion particularly during high traffic months.
These aren’t socialist ideas or anti-capitalist suggestions. These are sensible ways of maximizing our infrastructure, making the area both better to visit and to live in, and remarkably cost effective. Roads cost $1 million a mile to build and years to plan and implement. Bridges cost even more and take even longer. Public transport, even subsidized, costs less and can be put into place right away or at least by next summer.
We have to take into account as I’ve said before, the changing demographics. Just because people drive here now and have dome for years, doesn’t mean they will continue to do so in the future.
In case you were wondering…..
….what happened to my weekly column in the Northwest Florida Daily News, here’s the scoop. Actually, I hear mutterings of “what column” and “what’s the Daily News?”, but I’ll ignore those for the moment!
Despite being asked to write the Talking Tourism column and being assured that both the newspaper and the readers enjoyed the piece and it was everything that had been asked for, it appears that I mentioned travel and tourism suppliers like Uber, Lyft, Trip Advisor, TripShock, Airbnb etc., but failed to give sufficient coverage to destin.com. destin.com is a website owned by the Daily News and is apparently the source of all tourism information in the area. Mea Culpa. I was referring to sites and companies who actually sold travel and tourism products, as opposed to just collecting tourism related stories.
No matter. The content of Talking Tourism will still be published on owenorganization.com/news, and there will also be a monthly Tourism Topics column in Coastlines, the publication brought to you by The Greater Fort Walton Beach Chamber of Commerce.
Keep your ears and eyes open for some other developments around the Talking Tourism subject over the next few months.
Until next month……
Please follow Owen Organization on Facebook, Twitter, Instagram, LinkedIn and 500px and on owenorganization.com.
This article appeared in the Northwest Florida Daily News on Sunday, June 19, 2017
By this time of the year, we are usually in a good position to know what sort of success the tourism industry is having not only locally, but nationally and internationally, as well. At the midpoint of 2017, the state of the tourism market is throwing up all sorts of conflicting results.
Here in Northwest Florida, where only 1 percent of our tourism is currently of international origin, we think that our domestic, drive-in visitors make us immune from trends in other sectors. Strangely what happens in one market does have an effect on the other areas.
First, the good news. Our local hospitality professionals are reporting excellent advance bookings for the summer season and bed tax collections have been up for the first quarter of the year. Important also is that bookings for attractions and experiences have been very strong in the first quarter and advance bookings are ahead of last year.
Visitors to Florida were up by 2.5 percent for the first quarter of the year over 2016 with 3.1 million visitors arriving. Visitors from Canada and UK were down but an increase in domestic visitors more than filled the gap.
Statistics from credit card companies for Northwest Florida show an increase in spending from cards with Canadian, UK and German addresses. Okaloosa County’s DMO (Destination Marketing Organization) feels this can be put down to Canadians preferring our area to central and south Florida, and that new flights into New Orleans from London and Germany may be bringing visitors here.
On the other side of the coin, the strength of the dollar against overseas currencies and other factors may discourage Europeans from heading to U.S. destinations. Some areas of Florida are seeing drops in online inquiries from the UK by as much as 60 percent. Foursquare, a location technology company, says that America’s market share of international leisure tourism declined an average of 11 percent between October 2016 and March 2017. However, the financial attractiveness of traveling to Europe has seen a huge increase in Americans heading east across the Pond with an 80 percent jump in U.S. to UK bookings reported by Expedia, an on-line travel agent.
So, nothing really conclusive, but the trend is currently good for Northwest Florida, which relies on domestic tourists. But with fewer internationals coming to the U.S. and more Americans traveling to Europe, the U.S. destinations that usually welcome overseas guests may start looking at attracting “our” domestic visitors. That’s not a good portent for 2018.
If the proposal to close Brand USA and the cut to Visit Florida’s budget from $100 million to $25 million goes ahead, then the Sunshine State will loose out to California and other domestic and foreign places. Areas like Orlando and south Florida may use their budgets and publicity to try to steal “our” visitors. It’s a distinct possibility.
It’s essential that the Gulf Coast destinations redouble their efforts to keep our exiting visitors and develop new markets as soon as possible. Nothing is definite, and we look set to have a really good 2017, but 2018 … who knows?
Martin Owen is an independent consultant to the tourism industry and owner of Owen Organization in Shalimar. Readers can email questions to email@example.com.
It should be noted that since this piece was written, the Florida Legislature have authorized a $75million budget for Visit Florida, albeit with severe restrictions on their ability to operate effectively.
This article appeared in the Northwest Florida Daily News on Tuesday, May 2, 2017.
Like other parts of Northwest Florida, Okaloosa County could attract a lot more economy-boosting visitors by opening a portion of its beaches to dogs.
That’s according to Martin Owen, a Shalimar-based tourism industry consultant who regularly attends Tourist Development Council meetings.
“It’s niche tourism we can attract, particularly out of season,” he said Thursday. “A lot of dog owners tend to like traveling with their dogs. Our neighboring counties are addressing this, and so is Okaloosa.”
County Marine Economic and Tourist Development Resource Coordinator Erika Zambello shared information with the TDC on Thursday about dog-friendly beaches in Walton County and Pensacola Beach in Escambia County. But she said she has not had any discussions with other Okaloosa County officials about establishing a dog-friendly section of beach.
With the exception of service animals and police dogs, dogs are prohibited on the publicly owned beaches of Okaloosa County, Destin and Santa Rosa County. In Walton County, property owners and permanent residents can bring their leashed dogs on the beach during certain hours and with a permit.
People who violate Okaloosa County’s law pertaining to dogs on the beach could be cited with a fine of at least $100. But such citations are rarely given, county officials said.
Usually, sheriff’s deputies will ask violators to remove their dogs from the beach and the dog owners do so without a problem, county spokesman Rob Brown said.
This column was published in the Northwest Florida Daily News on Sunday March 2, 2017.
I’ve been asked a number of times to explain how bed tax, or Tourist Development Tax, is used. There also have been some letters suggesting that it be used for items or services that aren’t currently covered, so I thought a brief explanation might be useful. Please bear in mind that I’m not a lawyer, but it would appear that even some lawyers can’t agree on the interpretation of some bed tax clauses, so I’ve gone with what the TDCs, tax collectors and others usually use.
You may remember that bed tax was set up to be charged on short-term rentals in designated tax areas. Some counties implement across the whole county (Escambia for example) while others have specified tax areas (e.g. Okaloosa and Walton). The tax is collected by the rental companies and hotels, and paid to the tax-collecting body of the county. Owners can pay direct to the county, too.
For those not on our mailing list, here’s the March newsletter!
Last month, we discussed how some politicians in Tallahassee, the Florida State capital, were playing politics with the future of Visit Florida, the State’s destination marketing organization. That fight isn’t over as we’ll report.
This month other politicians both here in the USA and in other parts of the world are having influences on tourism in ways they cannot predict.
Good news however is that Culinary Tourism is booming. Read on….
The move by Speaker Corcoran to de-fund Visit Florida continues, although he has indicated that he no longer wants to close the organization down, merely to limit its ability to operate and drastically reduce its budget. Governor Scott is fiercely fighting this along with the Tourism Industry and it would appear, members of the Senate. The fight is not over and if you’re involved in the industry in Florida, I urge you to a) contact your representatives to support Visit Florida and b) attend Tourism Day in Tallahassee this month to lobby in person. Please contact me if you need details of how to attend Tourism Day.
In what promises to be a difficult year for international tourism, further obstacles are being dreamt up by politicians on either side of the Atlantic.
The strong US dollar has the potential for discouraging European tourists in particular from visiting the USA this year. Some of those European economies are not strong currently and the USA could be expensive for them.
We now have the three year-old dispute between the EU and the USA over visas. The EU parliament consider that the countries of the community should be considered as one (that has resulted in the UK wanting ‘out’ with their Brexit vote), although the US still recognizes individual states. The US has refused to allow some EU states access to the Visa Waiver Program which allows visa free travel into the US. Poland, Croatia, Bulgaria, Romania and Cyprus don’t meet the US security requirements. The EU has said that either the US accept these countries or all US Citizens will require visas to visit any EU country.
This is an old dispute and has now reached the ‘Who blinks first’ stage. Despite the strong dollar which makes overseas travel attractive, American tourists would be very discouraged if they were required to get a visa. Europe needs those US dollars after a lackluster 2016 tourist season following terrorist attacks, and although advance demand has been strong, it wouldn’t take much to scupper that.
Traveling the other way – east to west – is also potentially threatened. I mentioned the strength of the dollar being a hazard, but what has been called the ‘Trump Effect’ is apparently causing a softening of travel demand. I’m not making any political points, just reporting on figures coming from sources in the tourism industry.
It appears that first announcements of a travel ban had a detrimental effect on European tourists plans to visit the US. I’ve been asked why, say, a German tourist would feel threatened by a ban on travelers from certain middle east countries. I can’t answer that easily, but believe me they are worried. Even the UK tourists who believe they are part of a ‘special relationship’ with the US, are as a group being cautious. Suffice to say that enquiries for flights to the US are down an average of 22%. Tourism research firms are projecting a loss of 6.3 million visitors ($10.8 billion in lost revenue). The tourism board of New York City has predicted that 300,000 fewer tourists will visit than did in 2016. Previously New York was predicting an increase of 400,000. Philadelphia has already lost one conference worth an estimated $7m as a result of the proposed travel ban.
Even the Canadian market is seeing a drop in the number of tourists intending to travel below the 49th.
That’s International tourism of course and it’s been suggested that it won’t affect US destinations that don’t cater for Internationals (like Northwest Florida, where only 1% of tourists are from outside the US). That may be true, but of course the markets that attract overseas travelers are hardly likely to sit and do nothing. They will want to find domestic tourists to replace the foreigners and they are not averse to creating marketing campaigns and making offers to lure those domestic guests away from places like the Northern Gulf Coast.
As the old Chinese curse says “May you live in interesting times”.
It’s not all bad news though…..
95% of travelers have said that they engage in unique and memorable food or beverage experiences while traveling, according to the World Food Travel Association ( I guess that they would say that!). Another research organization, Destination Analysts, claim that 50.7% of Millennials won’t visit a destination that doesn’t have good restaurants – although they don’t define what makes a good restaurant.
Before you state that Millennials are just children, remember that the first Millennials turn 35 this year! Also important is that the Centennial Generation (Generation Z or ‘Post Millennials’) are now just beginning to enter the workforce, so are beginning to effect the market.
Certainly the younger generations are having a strong influence on their parents and grandparents when it comes to food. A recent report by the HAAS Center (part of the University of West Florida) was created to examine tourism trends in Okaloosa County (home to Destin, Fort Walton Beach and Okaloosa Island). They found that although tourist spending in restaurants in the county increased in 2015 more than 15% over 2011, its revenue per seat had grown only 12%, where peer and competing counties had grown by 28%. The competing counties are where most (but certainly not all) of the new and more creative restaurants are found. Interestingly, the area has seen an increase in the number of up-scale grocery stores (Whole Food Market, Fresh Market and Publix). Whereas in 2011 tourists spent twice as much in restaurants as they did in grocery stores, it’s likely that 2016 will see tourists spend more in grocery stores than in restaurants for the first time.
The take away (sorry!) is that those tourists are seeking culinary experiences, and finding them.
Which brings me to the really good news for my home area. I recently attended the Florida Restaurant and Lodging Association’s annual awards ceremony for the North West Florida region. The display of talent at that event was stunning. The quality of the areas chefs, wait staff and managers was exceptional and their depth of knowledge, experience and creativity was at least a match for more recognized tourist areas. A similar level of expertise was evident in the hotel, resort and accommodation sector.
That Culinary Tourism is growing makes really good news for the industry as a whole. It’s also great for The Northern Gulf Coast of Florida. The Tourism Industry worldwide is going for Culinary Tourism in a big way from the traditional destinations of Europe to the New World and areas like Australasia. Even Costa Rica getting in on the act. Don’t underestimate the Cruise lines either.
This article appeared in The Northwest Florida Daily News Talking Tourism Column on Sunday, February 26.
There is trouble in Tallahassee. Some lawmakers wish to defund and close Visit Florida, the state’s Destination Marketing Organization (DMO) and tourism promoter. There are a large number of people who are opposed to this — to be honest, the whole of the tourism industry. I don’t wish to be political, but you know I’m unashamedly pro-tourism, and I thought you may like to know what the two sides are presenting.
In one corner is Speaker of the House Richard Corcoran, R-Land O’Lakes, who feels that state tourism neither works nor is necessary. Not only is Corcoran proposing to defund Visit Florida, he’s proposing that local DMOs also be wound up. The argument is that tourists came before the state started marketing, and will continue to come regardless.
Opposing is the tourism industry — hoteliers, restaurants, theme parks, charter boat captains, attractions, guides, housekeepers, waiters and waitresses, taxi and Uber drivers — and anyone who does business with the tourism industry (in total, there are 1.4 million tourism job holders in Florida). This group believes that in the competitive tourism marketplace today (where Florida not only competes with New York, California and other states, but with the countries of the Caribbean, Europe, Australasia, the Middle East, India, Asia and South America) a public/private funding partnership is essential for continued growth and, indeed, just to maintain position.
We just spent a long weekend in New Orleans, which is one of my favorite cities. It’s totally unique. I was first introduced to NOLA in 1972 as a young travel agent on a U.S. tour (seven cities in 10 days!). Being taken to Bourbon Street as a 20-year-old was quite an eye-opener. Luckily my wife lived in New Orleans for quite awhile and really is “local,” so we’re not exactly tourists when we visit at least four times a year.
The city is a real case study for tourism, joining an historic center with a mix of cultures plus being a living, thriving business hub. It has nearly year-round tourism, although the local businesses are only too aware when they have fewer tourists. The Crescent City is known world over for Mardi Gras (or Carnival, as the locals term it) which is both a blessing and a curse as it attracts enormous numbers of tourists. Those tourists tend to consider partying an Olympic sport, which adds a whole new level to tourist management. Natural events like Hurricane Katrina also have put an added strain on the city, and its recovery from a tourism point of view has been nothing short of remarkable.
The great thing about NOLA ………
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This month’s newsletter is unashamedly aimed at my tourism colleagues in Florida. I’m not usually given to being political (This is not political on party lines) but recent proposals to discontinue State support for Visit Florida and local Destination Marketing Organizations is a major concern for anyone even remotely connected to the industry.
The proposals, by Speaker of the Florida House, go further than removing funding from Visit Florida but wish to dismantle and abolish the organization totally.
For those of you in other US States, and indeed in other countries, you should be aware of this issue as it could be coming to your area too. Many politicians, world wide, fail to recognize the benefits of tourism to both their economies and to the benefit of mankind generally. Not only does travel “broaden the mind” but tourism promotes understanding of cultures and enables peoples to just get on with each other.
But back to Florida.
In 2015 Florida welcomed 106.6 million out of state and international visitors. The international travelers came from 190 different countries. This means that one in five international visitors to the whole USA come to Florida.
Those visitor’s sending supported 1.4 million jobs in the state and every 76 visitors supports 1 job. They spent an average of $300 million per day in 2015 – a total of $108.8 billion, which in turn generated $11.3 billion in sales tax.
We have had six straight years of record tourism spending.
For every $1 that the state of Florida invests in tourism, $3.20 in tax revenue is generated. That’s a 320% return on investment. Where else could you legally generate that sort of return?
If the proposals to defund Visit Florida go ahead, then tourism figures will suffer. Just a 5% drop in visitors would mean a loss of $5.5 billion in revenue, $563 million in taxes and a loss of 70,000 jobs.
Local fishing and tourist related industries (which is virtually every business in Northwest Florida – Remember the effects of the Oil Spill?) would all suffer. The Destin fishing fleet alone brings in $173 million in after value dollars to Okaloosa and Walton counties and the city of Destin. 90% of those dollars come from out of state tourists.
Colorado tried this and they lost 40% of their leisure traveler market over three years and revenues declined by $134 million.
Without the state and local taxes generated by tourism, each Florida household would have to pay $1,535 just to maintain the current level of government services.
We would also have to have State Income Tax, which we avoid currently. Tourists pay over 24% of sales tax, which is the sole reason we don’t have a state income tax.
Pennsylvania cut their budget in 2009 from $30 million to $7 million. Every $1 cut from the tourism budget cost $3.60 in lost tax revenue. From 2009 to 2014 Pennsylvania lost more than $600 million.
Washington State cut their budget from $7 million to $0 in 2011. Their competing state, Montana grew their tourists 70% faster than Washington.
Colorado cut their $12 million budget to $0 in 1993 and lost $1.4 billion in traveler spending within one year. Tax receipts declined by $134 million from ’93 to ’97. 18 years later Colorado still hasn’t recovered their market share.
Increasing the tourism budget has increased travel spending in many states, for example –
California increased their budget $50.1 million and travel spending increased $32.4 billion.
Florida increased the budget $43.3 million and travel spending increased $30 billion.
Minnesota increased their budget $10.5 million and travel spending increased $3.5 billion.
New Mexico increased budget $4.6 million and travel spending increased $933 million.
(Figures from Roger Dow, Head of U.S. travel)
It is essential that the tourism industry in Florida – all members and all levels – get behind the action to save Visit Florida and indeed all the Destination Marketing Organizations. Failure to do so will result in critical loss of jobs, drastic loss of tax revenue, and severe hardship for tax payers in the State.
To cut funding to Visit Florida and other DMOs is bordering on insanity. No business person in their right mind would take this sort of action.
As a consultant to the tourism industry my advice – given free, gratis and for nothing – is to resist this move strenuously.